TX C Income tax liabilities of companies

Written by Saad Rahman (ACCA)

اے سی سی اے · ٹیکسیشن (پاکستان) · 8 سوالات

نام: ____________________ تاریخ: ____________

Taxable income of an ordinary company (not a small company or bank) is Rs. 10,000,000. What is the tax at the corporate rate in ACCA's 2026 to 2027 tables?
- A Rs. 2,900,000
- B Rs. 2,000,000
- C Rs. 1,700,000
- D Rs. 3,500,000
A small company has taxable income of Rs. 10,000,000. What is the tax?
- A Rs. 2,000,000
- B Rs. 2,900,000
- C Rs. 1,000,000
- D Rs. 1,700,000
A company has accounting income of Rs. 30,000,000 and normal tax of Rs. 4,000,000. The alternative corporate tax rate is 17 percent. What tax is payable?
- A Rs. 9,100,000
- B Rs. 900,000
- C Rs. 4,000,000
- D Rs. 5,100,000
Which statement about a company's tax liability is correct?
- A A company is liable to tax separately from its shareholders
- B A company never pays income tax
- C Shareholders pay the company's tax
- D A company is taxed only on dividends paid
What are thin capitalisation rules about?
- A Restricting dividends
- B Limiting the deduction of interest on high debt in a foreign-controlled company
- C Increasing share capital
- D Reducing the tax rate
Where a company has a small and medium enterprise (SME) under the final tax regime, which rates are in ACCA's table?
- A 0.25 percent for Category-1 and 0.5 percent for Category-2
- B 7.5 percent and 15 percent
- C 20 percent and 29 percent
- D 17 percent for both
What is the general rate of withholding tax on dividends in ACCA's table?
- A Nil
- B 25 percent
- C 7.5 percent
- D 15 percent
When is a company resident in Pakistan?
- A When it has any customer in Pakistan
- B When it has one employee in Pakistan
- C When it has a bank account in Pakistan
- D When it is incorporated in Pakistan, or its control and management are in Pakistan

جوابی کلید

1. A, 2. A, 3. D, 4. A, 5. B, 6. A, 7. D, 8. D

The rate for any other company is 29%.
The small company rate is 20%.
The alternative tax (17% x 30,000,000 = 5,100,000) is higher than normal tax, so the higher amount is payable.
A company is a separate taxpayer.
They apply to foreign-controlled resident companies and branches.
The 7.5 and 15 percent rates are for the normal law regime.
7.5 percent applies to independent power producers and 25 percent to certain exempt or loss-making payers.
Residence is decided by incorporation or control and management.